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 Illinois with Holding Income Tax Return Wikiform 2020

2020-2025 Form

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[Music] there are currently only nine U.S states that don't tax earned income unfortunately Illinois is not one of them which means that if you live and work in Illinois you have to pay income tax to the state Illinois taxes income differently than the federal government so when you start a new job your employer will ask you to fill out the Illinois W-4 in addition to the federal W4 form in fact you have to fill out a separate Illinois W-4 for each job you hold Illinois calculates taxes differently than the federal government it uses the allowance deduction method which estimates your tax withholding based on the number of dependents and qualifying allowances you claim on the Illinois W-4 allowances effectively lower your taxable income so the more allowances you claim the less taxes your employer will withhold from your paycheck having said that it's important to claim the correct number of allowances to avoid paying additional taxes or penalties at the end of the tax

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